Walmart is cutting prices of clothes and general merchandise to appeal to inflation-hit shoppers

North Miami Beach, Florida, Walmart store, interior office supplies merchandise display

Jeffrey Greenberg/Universal Images Group via Getty Images

  • Walmart is cutting the prices of clothing and general merchandise, it said Monday.

  • This is because soaring food and fuel prices mean shoppers have less money to spend on other items.

  • Stores are struggling to cope with excessive levels of inventory, Insider previously reported.

Walmart is slashing the price of clothing to clear excess inventory and draw in inflation-hit shoppers.

Food prices in the US rose 10.4% in the year to June, the largest annual increase in more than 40 years, according to data from the Bureau of Labor Statistics.

Shoppers are spending more on food and fuel, meaning they’re buying less from other product categories like clothing, Walmart said in a business update Monday.

As a result, the chain is having to cut prices on some products “to move through the inventory, particularly apparel,” the retailer said.

Walmart website screenshot announcing "end-of-season clearance"

Walmart is cutting the price of apparel on its website.Grace Dean/Insider

Walmart had a third more inventory on April 30 than on the same day a year earlier.

Employees told Insider that the back rooms of stores were filled with pallets and outdoor storage trailers, with some workers blaming this on the company’s inventory system which automatically orders supplies, including some that their stores already had in stock.

Some employees said that their stores resorted to using trailers to store the excess supply, while one shared a picture of a pile of boxes blocking access to a private breastfeeding room.

In a company earnings call in mid-May, CEO Doug McMillon said that inventory was up because of inflation, late deliveries, and intentional inventory buildup, and that the company would work through the excess stock in the coming quarters.

Walmart had been “aggressive” with its price rollbacks on apparel

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Russians flock to H&M as fashion retailer opens stores to sell inventory

  • This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine

MOSCOW, Aug 2 (Reuters) – A long queue of Russians snaked through a Moscow shopping centre on Tuesday, waiting to get into H&M (HMb.ST) as the fashion retailer flung open its doors for a final time to sell inventory before making a full exit from the Russian market.

Scores of consumer brands suspended operations in Russia after Moscow sent tens of thousands of troops into Ukraine on Feb. 24, with H&M, IKEA and Nike (NKE.N) among the companies to have announced plans for a permanent exit.

“Well, it is closing, that’s why we are standing here,” one customer, Irina, told Reuters. “I’m going to buy whatever there is.”

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reuters.com” article_url=”/business/retail-consumer/russians-flock-hm-fashion-retailer-opens-stores-sell-inventory-2022-08-03/”

“Sadly, the reason why all this is happening is awful,” another customer, Ekaterina said. “Everything else is meaningless, like how we are going to manage (without H&M).”

Furniture giant IKEA has reopened for an online-only sale, but H&M opted to allow customers back in person. Exiting Russia, H&M’s sixth-biggest market, is expected to cost the company almost $200 million and affect 6,000 staff. read more [nL8N2YZ15F]

H&M did not immediately respond to a request for comment on Tuesday.

A company spokesperson in July said H&M would temporarily reopen physical stores in August to sell the remaining inventory in Russia. H&M, the world’s second-biggest fashion retailer, rents its 170 physical stores in the country and operates them directly.

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Reporting by Reuters; editing

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